Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Zebra Technologies' second quarter of fiscal 2026 was defined by a $73 million tariff refund recovery that sharply boosted margins, while organic demand improved modestly across both business segments. The recovery, from the Supreme Court invalidating certain import tariffs, contributed to a significant jump in operating income. However, aggressive share repurchases drained cash reserves by 82% year-over-year and swelled short-term debt to $2.3 billion, raising liquidity concerns ahead of a planned refinancing.
Revenue
$1.56B
+20.42% YoY
EPS (Diluted)
$4.85
+121.46% YoY
Gross Margin
53.0%
+5.3 pts YoY
Operating Income
$321M
+75.41% YoY
Source: SEC XBRL
Zebra Technologies (ZBRA) reported Q2 FY2026 revenue of $1.56B, up 20.4% year over year. Operating margin was 20.6%, up 6.4 points from 14.2% a year earlier. ZBRA's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 4.75 | 4.33 | Beat +9.6% |
| Dec 2025 | 4.33 | 4.42 | Miss -2.0% |
| Sep 2025 | 3.88 | 3.83 | Beat +1.4% |
| Jun 2025 | 3.61 | 3.39 | Beat +6.5% |
2 reported segments · SEC XBRL
Segment revenue totals $1.56B, which is the $1.56B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure ZBRA itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
The Company recognized a $73 million pre-tax benefit from expected refunds of previously paid IEEPA import tariffs, with $46 million attributed to the Connected Frontline segment and $27 million to Asset Visibility & Automation, boosting gross margin.
Source: 10-Q Item 2 MD&A
Consolidated Organic Net Sales grew 9.2% in the second quarter, with CF organic growth of 7.5% and AVA organic growth of 11.4%, excluding the effects of acquisitions, dispositions, and foreign currency.
Source: 10-Q Item 2 MD&A
The 2025 Productivity Plan was substantially completed, with an additional $8 million in severance costs in Q2, bringing cumulative one-time charges to $37 million; management expects $35 million in annualized net pre-tax cost savings.
Source: 10-Q Item 2 MD&A
The company repurchased $568 million of its common shares year-to-date, including $268 million in the second quarter, funded partly by increased borrowings under its Revolving Credit and Receivables Financing Facilities.
Source: 10-Q Item 2 MD&A
As of July 4, 2026, the current portion of debt surged to $2,275 million, primarily from the Term Loan A and Revolving Credit Facility maturing in May 2027; the company plans to refinance in the second half of 2026.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
The company's current ratio stands at 0.52, with current liabilities of $4.0 billion against current assets of $2.1 billion. A significant portion of this is the $2.3 billion current debt due within 12 months, requiring a successful refinancing, which may be challenged by market conditions.
Source: 10-Q Balance Sheet (XBRL)
The debt-to-equity ratio is 1.51 (total liabilities to equity), reflecting significant reliance on debt financing. The company used increased borrowings to fund share repurchases, which raises interest costs and financial risk.
Source: 10-Q Balance Sheet (XBRL)
Organic sales growth of 9.2% was significantly lower than reported growth of 20.4%, indicating a heavy reliance on recent acquisitions like Elo Touch and Photoneo to drive top-line expansion. Integration risks and potential impairment of goodwill could impact future results.
Source: 10-Q Item 2 MD&A
The substantial benefit from IEEPA tariff refunds highlights the company's exposure to trade policy changes. Future tariff impositions could materially increase costs, and the company's ability to mitigate through price realization is uncertain.
Source: 10-Q Item 2 MD&A
Aggressive buybacks of $568 million year-to-date reduced cash reserves by 82% year-over-year, constraining liquidity. If operating cash flow weakens, the company may face difficulties meeting debt obligations or investing in growth.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.56 $B | 1.29 $B | +20.42% |
Cost of Revenue $M | 732.00 $M | 677.00 $M | +8.12% |
Gross Profit $M | 825.00 $M | 616.00 $M | +33.93% |
Operating Income $M | 321.00 $M | 183.00 $M | +75.41% |
Net Income $M | 233.00 $M | 112.00 $M | +108.04% |
EPS (Basic) $ | 4.89 $ | 2.20 $ | +122.27% |
EPS (Diluted) $ | 4.85 $ | 2.19 $ | +121.46% |
R&D Expense $M | 159.00 $M | 144.00 $M | +10.42% |
Answers draw on this SEC filing and the data on this page
Zebra Technologies delivered strong Q2 2026 revenue growth of 14.3% to $1.495B, but net income was nearly flat at $135M (-0.7% YoY) as higher debt and financing costs offset operational gains, while a significant $300M share buyback drove cash down 87% to $114M.
Zebra Technologies (ZBRA) delivered 8.3% revenue growth to $5.40B in FY2025, but net income fell 20.6% to $419M as higher costs, increased R&D spending, and a sharp rise in share buybacks weighed on profitability and cash balances.
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